Oil Prices Rise, European Stocks Expected to Open Higher
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 16 2026
0mins
Source: CNBC
- Oil Price Surge: As of Friday, oil prices are on track for weekly gains, with U.S. crude prices topping $100 per barrel again on Sunday, despite the U.S. issuing a 30-day license for countries to purchase Russian oil, indicating market sensitivity to Middle Eastern tensions.
- European Market Outlook: European stocks are expected to open positively, with the U.K.'s FTSE index projected to rise by 0.26%, Germany's DAX and France's CAC 40 up by 0.2%, and Italy's FTSE MIB increasing by 0.4%, reflecting investor optimism amid geopolitical unrest.
- Impact of Military Operations: The ongoing U.S. and Israeli military operations against Iran remain a key focus for global markets, potentially leading to further oil price volatility, which could affect investor confidence and market stability.
- Central Bank Meetings: This week, the U.S. Federal Reserve, European Central Bank, and Bank of England will hold policy meetings, although the Middle East conflict has dampened expectations for interest rate movements, keeping market participants on alert for central bank policy directions.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 210.710
Low
158.00
Averages
176.95
High
206.00
Current: 210.710
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Implications: This executive transition not only underscores the company's commitment to safety and operational efficiency but also reflects Chevron's dedication to enhancing management expertise in response to industry challenges, ensuring long-term sustainable growth.
See More
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- Gas Price Surge: Since late February, U.S. gasoline prices have jumped by approximately $1.1, with the national average surpassing $4.018 per gallon, reflecting the impact of Middle Eastern conflicts on global energy flows and likely putting pressure on consumer spending.
- Strong Crude Futures Performance: West Texas Intermediate crude futures have risen over 55% in March, positioning it for its best monthly performance since May 2020, indicating market sensitivity to future oil price fluctuations.
- Market Reaction Expectations: Analysts anticipate that gasoline prices staying above $4 will be shorter than the 23 weeks seen during the 2022 Russia-Ukraine war, suggesting a potentially swift market response to the current conflict.
- Temporary Nature of High Prices: Vice President JD Vance referred to high gas prices as a “temporary blip,” indicating that the government is taking measures to ensure prices decrease, reflecting policymakers' focus on stabilizing the energy market.
See More
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See More
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- Annual Reconstitution Adjustment: The Schwab U.S. Dividend Equity ETF recently completed its annual reconstitution, deleting 22 stocks and adding 25 new ones, with its energy allocation decreasing from 23.5% to 16.3%, indicating a reassessment of the energy market.
- Comparison of New and Old Holdings: The Schwab ETF exited three energy stocks—Valero, Haliburton, and Ovintiv—due to their slow dividend growth and yields below the fund's average of 3.4%, reflecting a stringent selection for high-yield stocks.
- New Potential Addition: Devon Energy, newly added to the fund, is expected to increase its dividend to $0.315 per share following its merger with Coterra Energy, raising its yield to 2.4% post-merger, thereby providing strong growth potential for the fund's returns.
See More
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- Energy Stock Reduction: The Schwab U.S. Dividend ETF has reduced its energy stock allocation from 23.5% to 16.3% post-annual reconstitution, reflecting a cautious stance towards future market volatility while still maintaining significant exposure to the sector.
- New Holdings Added: The fund has added Devon Energy with an initial allocation of 0.8%, which is expected to rise to 2.4% following its merger with Coterra Energy, indicating a preference for high-growth dividend stocks amidst changing market conditions.
- Dividend Growth Potential: Devon Energy plans to increase its quarterly dividend by 31% post-merger, enhancing its attractiveness, particularly against the backdrop of rising oil prices, which is expected to yield substantial returns for investors.
- Key Holdings Performance: Despite reducing energy stock exposure, the fund's top two holdings remain Chevron and ConocoPhillips, with allocations of 4.6% and 4.3%, respectively, both of which demonstrate strong dividend growth potential, likely to continue driving the fund's overall returns.
See More
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- Geopolitical Impact: The ongoing U.S.-Iran conflict continues to capture investor attention, with soaring oil prices raising inflation concerns and recession risks, thereby clouding the outlook for monetary policy and affecting market sentiment.
- Rate Expectations: According to the CME's FedWatch tool, money markets overwhelmingly price in no rate cuts from the Federal Reserve for the remainder of the year, reflecting a cautious investor stance on future monetary policy.
- Economic Data Focus: Investors will closely monitor the upcoming February JOLTs job openings data, set to be released at 10 a.m. ET, which could further influence market sentiment.
See More
